1.Matters concerning the preparation of summary report on performance for the third quarter

(1)

Are any convenient accounting methods adopted?
The standard for allocating reserves are based on convenient method.

YES

(2)

Are there any changes in the accounting method compared to the one applied in the most recent fiscal year?

NO

(3)

Are there any changes in the scope of consolidation and the equity method?
Consolidated subsidiaries: New: 0, Excluded: 1
Firms accounted for under the equity method: New: 0, Excluded: 0

YES

2.Summary of business results for the third quarter of the fiscal year ending March, 2007 (April 1, 2006 - December 31, 2006)

(1)Progress in business results (consolidated)

(Fraction less than 1 millions of yen omitted)

Net Sales

Operating Income

Ordinary Income

Net Income

March 2007, third quarter

March 2006, third quarter

millions of yen

%

257,971

-0.7

259,864

0.9

millions of yen

%

1,792

-5.0

1,886

-14.3

millions of yen

%

1,664

-6.3

1,776

-4.6

millions of yen

%

935

-10.9

1,050

37.9

(Reference)
Fisical year ending March

375,759

4,739

4,679

2,765

Net Income per Share

Net Income per Share(Diluted)

March 2007, third quarter

March 2006, third quarter

Yen

Sen

48

68

57

07

Yen

Sen

47

19

53

50

(Reference)
Fisical year ending March

143

15

132

77

Note)

Percentages shown in the columns of sales volume, operating profit, and others indicate the rate of increase/decrease relative to the same period of the preceding year.

[Qualitative Information on the Current Progress towards Operating Results (Consolidated)]

According to the Japan Electronics and Information Technology Industries Association (JEITA), the corporate-use PC market maintained steady demand with the backdrop of good corporate results and growing awareness of security, but the personal-use PC market experienced a sharp decline because consumers withheld purchase in anticipation of the launch of Microsoft’s new operating system “Windows Vista.” As a result, PC shipments in the third quarter (Oct.-Dec. 2006) decreased as much as 10% from the same period of the previous term to 2,591,000 units.

Under these difficult circumstances, our group is improving the quality of our service, besides increasing sales volumes, under the theme “Challenge to a new growth – quality and quantity – toward the next stage”‚ as we did in the previous term. We wish to become a distributor selected by customers in pursuit of customer-oriented attitudes, basic policy on community-based marketing‚ and low-cost operation.

We set “Over a Million in 2006” as a slogan for the PC market We shipped 1,178,000 PCs in the previous term, and we project that we will ship 1,230,000 units in the current term. Likewise, we are making efforts to increase server shipments from 54,000 units in the previous term to 60,000 units this term under the slogan “60,000-Unit Server Challenge.”

We held software solution seminars and security seminars across the country, focusing on internal control and measures for information security. At the same time, we organized “DIS World” to foster community-based marketing and held it in Sapporo in July, in Niigata in October, and in Kumamoto in December, each of which acquired a favorable reputation.

As a result of our efforts, we achieved consolidated sales of ¥257,971 million, operating profit of ¥1,792 million, ordinary profit of ¥1,664 million, and quarterly net profit of ¥935 million in the third quarter.

[Characteristics of our group’s business results for the fourth quarter of the current fiscal year]

Both the sales and profit of our group tend to be concentrated in the second and fourth quarters, not only because equipment and instruments are mostly shipped in September and March but also because systems are mostly introduced and inspected in these two months.

(2) Changes in financial position (consolidated)

(Fraction less than 1 millions of yen omitted)

Total Assets

Net assets

Ratio of
Shareholders' Equityto Total Assets

Shareholders' Equityper Share

March 2007, third quarter

March 2006, third quarter

millions of yen

117,858

121,685

millions of yen

36,246

34,104

%

30.8

28.0

Yen

Sen

1,884

53

1,790

73

(Reference)
Fisical year ending March

134,072

35,965

26.8

1,872

33

Cash Flows

(Fraction less than 1 millions of yen omitted)

Net Cash from
Operating Activities

Net Cash from
Investing Activities

Net Cash from
Financing Activities

Cash and Cash
Equivalents at
Term End

March 2007, third quarter

March 2006, third quarter

millions of yen

4,659

-

millions of yen

-443

-

millions of yen

-1,738

-

millions of yen

5,889

-

(Reference)
Fisical year ending March

1,136

-3,935

-479

3,413

Note)

Because we began to disclose cash flow in this quarter, the cash flow for the same quarter of the previous term is not mentioned.

Total assets in the third quarter decreased by ¥3,826 million over the same period of the previous term to ¥117,858 million because of decreased cash and savings due to payment of accounts payable.

Net assets in the third quarter increased by ¥2,142 million over the same period of the previous term to ¥36,246 million because of the conversion of bonds with share warrants to stocks. The equity ratio increased by 28.0% over the same period of the previous term to 30.8%.

(Consolidated Cash Flow Statement)

At the end of the third quarter of the consolidated accounting period, accounts payable and accounts receivable decreased by ¥14,937 million and ¥16,962 million, respectively. Outstanding collections also decreased by ¥1,293 million, and the depreciation cost was ¥792 million. As a result, cash flow from operating activities was ¥4,659 million in surplus. Cash flow from investment activities was ¥443 million in deficit because of the acquisition of fixed assets, and that from financial activities was ¥1,738 million in deficit because of the refund of debt loans and dividend payments. Accordingly, at the end of the third quarter the balance of cash and equivalent had increased by ¥2,476 million from the end of the previous quarter to ¥5,889 million.

3.

Forecast of consolidated business results for fiscal year ending March 2007
(April 1, 2006 - March 31, 2007)

Net Sales

Ordinary Income

Net Income

Entire fiscal Year

millions of yen

388,000

millions of yen

5,400

millions of yen

3,100

Note)

Estimated net income per share for the fiscal year (full year):¥161.17

* Actual business results may differ from estimates mentioned above due to various factors.

[Qualitative information concerning the expected business results]

In the third quarter, everything moved nearly as planned, and we have therefore not changed our projection for the business results announced on November 2, 2006.
The expected net profit per share has been corrected to account for the increase in the number of shares issued following the conversion of the corporate bonds with share warrants into shares in the third quarter of the current fiscal year.